In a sweeping move to recalibrate U.S. trade policy, President Donald Trump on Thursday signed an executive order imposing steep new tariffs on 95 countries and territories, including major partners like India, Pakistan, and the European Union. The order, titled “Further Modifying The Reciprocal Tariff Rates,” is set to take effect on August 7, with some tariffs reaching as high as 41%.
India Among the Hardest Hit
India has been hit with a 25% “Reciprocal Tariff, Adjusted,” one of the highest among key U.S. trading partners. The White House cited India’s “obnoxious non-monetary trade barriers,” a persistent trade imbalance, and close defense and energy ties with Russia as reasons for the tariff hike.
Although the original implementation date was August 1, the U.S. pushed it to August 7 to give Customs and Border Protection time to update systems. A senior official told the Associated Press that the extension was necessary to harmonize the complex adjustments.
Strategic Misalignment = Higher Tariffs
Countries with large trade surpluses or limited strategic alignment with the U.S. are seeing the steepest hikes. The highest tariffs include:
- Syria: 41%
- Laos and Myanmar: 40%
- Switzerland: 39%
- Iraq, Serbia, Canada: 35%
- Pakistan: 19%
- India: 25%
In South Asia, India and Pakistan stand out as major targets, with India’s tariff partially tied to its ongoing energy imports from Russia. Secretary of State Marco Rubio noted that India’s Russian oil trade remains a “clear point of irritation” in bilateral ties.
India Responds
India’s Ministry of Commerce said it is evaluating the impact of the new measures and remains committed to protecting national interests. Talks on a reciprocal trade deal with the U.S. are ongoing, with five rounds already completed and a sixth expected soon. India has held firm on issues such as agriculture and dairy, rejecting U.S. demands for wider market access.
Full Tariff List Under Trump’s New Order
The executive order outlines new tariffs ranging from 10% to 41% based on trade deficits and political alignment. Key countries and their new rates:
- India – 25%
- Pakistan – 19%
- Iraq – 35%
- Switzerland – 39%
- Syria – 41%
- Laos, Myanmar – 40%
- Serbia, Canada – 35%
- Malaysia, Philippines, Thailand – 19%
- Bangladesh, Sri Lanka, Taiwan, Vietnam – 20%
- EU (Goods >15%) – 0%; EU (Goods <15%) – 15% minus Column 1 duty
- UK – 10%
- Brazil – 10%
- Indonesia – 19%
- Kazakhstan, Brunei, Tunisia – 25%
- South Africa, Algeria, Libya – 30%
For a full list of all 95 affected countries and the specific tariff rates, see the complete table in the appendix.
India in the Crosshairs
Trump’s tariff on Indian goods appears to be both a commercial and geopolitical signal. Besides penalizing India for its market restrictions, the U.S. also sees India’s Russian oil purchases as undercutting Western sanctions against Moscow. While India insists its purchases are driven by price and national interest, the move has clearly strained trade relations.
The U.S. insists these tariffs are part of a broader effort to create fairer trade arrangements and address long-standing imbalances. Whether this spurs negotiations or trade retaliation remains to be seen.
